Dell saw profits plummet by 73% to $226m (£149m), as its first quarter (Q1) results revealed its hardware division's profits to be in freefall.

Profits in the company’s end-user computing business shrank from representing 61% of overall profits in the 2012 May quarter, to just 31% for the same period in 2013.

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The Dell Services division now contributes more than half of overall profits, compared with one-third in the first quarter of 2012, while Dell’s Enterprise Solutions arm composes 19% of overall profits, compared with 7%.

Overall sales for the period dropped 2% to $14.1bn.

The news comes as founder Michael Dell is attempting to take company off the stock market and transform it into a software, services and cloud business.

Brian Gladden, Dell chief financial officer (CFO) said: “We made progress in building our enterprise solutions capabilities in the first quarter and are confident in our strategy to be the leading provider of end-to-end scalable solutions.”

He said: “In addition, we have taken actions to improve our competitive position in key areas of the business, especially in end-user computing, and it has affected profitability. We’ll also continue to make important investments to support our strategy and drive long-term profitability.”

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